I have made mug rugs and embroidered the design as normal and put clear plastic over the top as the last part. The outside edge.
I have used thin vinyl and iron on vinyl with success.
Made these for the grandsons journal a few yrs back. Attatched design onto glitter paper then laminated. Then glued onto journal. So i say . Yes go for it :) Designs by basketcase :))
Thank You so much - your ideas are great. Thanks for the pictures. This is what I will do . Thanks again.